Question: When the Fed increases the fed funds rate, we represent this as an upward shift of the MP schedule because O tax collections take time

 When the Fed increases the fed funds rate, we represent this

as an upward shift of the MP schedule because O tax collections

When the Fed increases the fed funds rate, we represent this as an upward shift of the MP schedule because O tax collections take time to adjust O the unemployment rate takes time to adjust inflation expectations take time to adjust O investment spending takes time to adjust

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